§ 20.40.070. Improvement security—Required.

A.

Any improvements, contract, or act required or authorized under any approval granted, subject to the provisions of this part, shall be secured by one of the following ways to the satisfaction of the Director of Public Works.

1.

Bond or bonds by one (1) or more duly authorized corporate sureties;

2.

A deposit, either with the City or responsible escrow agent or trust company, at the option of the City, of money or negotiable bonds of the kind approved for securing deposits of public moneys;

3.

An instrument of credit from one (1) or more financial institutions, subject to regulation by the State or federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment;

4.

A lien upon the property to be divided, created by contract between the owner and the City, if the City finds that it would not be in the public interest to require the installation of the required improvement sooner than two (2) years after the recordation of the map; or

5.

Any form of security, including security interests in real property, which is acceptable to the City.

B.

Any written contract of security interest in real property entered into a security for performance pursuant to Subsection A shall be recorded with the County Recorder. From the time of recordation of the written contract or document creating a security interest, a lien shall attach to the real property particularly described therein and shall have the priority of a judgment lien in an amount necessary to complete the agreed to improvements. The recorded contract or security document shall be indexed in the grantor index to the names of all record owners of the real property as specified on the map and in the grantee index to the City which approved the map. The advisory agency may at any time release all or any portion of the property subject to any lien or security interest created herein or subordinate the lien or security interest to other liens or encumbrances, if it determines that security for performance is sufficiently secured by a lien on other property or that the release or subordination of the lien will not jeopardize the completion of agreed upon improvements.

Any such security agreement shall be in substantially the form described in Section 66499 of the Subdivision Map Act.

C.

Final Tract Map. Subdivision security agreements for final tract maps shall be authorized by the City Council and executed by the City Manager.

D.

(Final) Parcel Map. The Director of Public Works is authorized to enter into and the Director of Public Works shall execute security agreements for improvements as required in the tentative map.

(Ord. C-5975 § 1 (part), 1983)